Topic 6: COMPETITIVE POSITIONING STRATEGY

Question 1

Where to compete, can be found through?

Answer 1

Segmenting to identify gap to identify gap/opportunity

then target

Question 2

How to compete? using 2

Answer 2

Positioning to emphasise differential advantage

Value Proposition

Question 3

Segment the market

Answer 3

Uses Base Variables to group customers with similar needs
After a company has identified the segments, it needs to describe them in terms of who they are and where they are located e.g. location and profiles

Question 4

What is a Base Variable

Answer 4

Demographic
Geographic
Behavioural
Psychographic

Question 5

Mass Marketing

Answer 5

Lowest cost, highest margins e.g. Fairy Liquid

focus on a large portion of the market
Broad range of potential customers
Common needs
Mass market media
Simple message

Question 6

Niche Marketing

Answer 6

A more narrowly defined customer group seeking a distinctive mix of benefits and values

be a large fish in a small pond e.g. Urban Pup

Question 7

Individual Marketing

Answer 7

The ultimate level of segmentation results in ‘segments of one’, ‘customised marketing’ or ‘one to one’ marketing- Kotler 2007

e.g. personalised t-shirts

Question 8

Targeting Considerations (2 factors)

Answer 8

• attractiveness of segment

- capability of organisation

Question 9

Market Positioning

Answer 9

is arranging for a product [/brand] to occupy a clear, distinctive and desirable place, relative to competing products [/brands], in the minds of target customers

positioning is in the mind of a customer

Can use a positioning map

Question 10

Bowman’s Strategic Clock

Answer 10

It is used for strategic positioning. Positions 6,7 and 8 are very uncompetitive

Y- axis perceived customer value
x-axis price

Question 11

Value Proposition

Answer 11

Describing how product/company will be better than competitiors
Recap needs
The solution you are offering
How you differentiate from different companies
Proof of how you are doing it

Question 12

Blue ocean strategy

Answer 12

The only way to beat the competition is to stop trying to beat the competition
Concept introduced by Kim & Mauborgne, Blue Ocean Strategy, 2005

Question 13

Value Innovation

Answer 13

e.g. Cirque de soleil

Simultaneous pursuit of Differentiation & Low Cost
Cornerstone of Blue Ocean Strategy
Cost savings are made by eliminating and reducing the factors an industry competes on
Customer value is lifted by introducing and raising elements that the industry has never offered